Iraq’s Council of Ministers has cleared the way for the National Investment Commission (NIC) to sign a contract with a joint venture between Malaysia’s HSS Engineering (HSSE) and Dubai-based Consultant HSS (CHSS) to deliver the Najaf–Karbala Metro, a 90-kilometre line designed to connect the country’s two busiest holy cities.
The cabinet decision, announced by the Prime Minister’s Office on Sept. 23, 2025, amended Resolution No. 24306 (2024) to authorize NIC to issue the investment license and finalize agreements with the consortium under Iraqi law .
The metro will feature four main stations — including Najaf and Karbala airports — and aims to ease congestion and improve safety for millions of pilgrims traveling between the cities each year. The project is being structured under a design–build–operate–maintain–
HSSE, a subsidiary of HSS Engineers Berhad listed on the Malaysian stock exchange, holds a 50% stake in the Middle East consultancy JV. The same HSSE–CHSS partnership was awarded in July 2024 the US$17.5 billion Baghdad Metro advisory contract, covering project management and construction supervision at benchmark fees of 0.6% of costs for evaluation and 1.2% for supervision, running through 2029 .
Analysts note that the Najaf–Karbala approval marks another step in Iraq’s push to modernize urban transport while easing road pressure during peak religious events. By leveraging the same JV already engaged on Baghdad Metro, authorities aim to ensure consistency in standards and execution across the country’s emerging urban rail network .
